Order 2014-7-1

Served: July 1, 2014

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, D.C.

 Issued by the Department of Transportation

on the 1st day of July, 2014

ORDER REQUESTING PROPOSALS

Summary

By this Order, the Department is requesting proposals from carriers interested in providing 

Essential Air Service (EAS) at Fort Leonard Wood, Missouri, with or without subsidy, for a new 

contract period, beginning January 1, 2015. Interested parties should submit their proposals no 

later than August 13, 2014 (See Appendix A for a map).

Background

By Order 2012-11-35, November 30, 2012, the Department reselected Hyannis Air Service, Inc. 

d/b/a Cape Air (Cape Air), to provide EAS at Fort Leonard Wood for a two-year period 

beginning January 1, 2013. Under that Order, the carrier operates four nonstop round trips each 

day (28 weekly) to St. Louis, with 9-passenger Cessna 402 aircraft. Fort Leonard Wood also 

experiences a significant number of passengers deploying to or returning from active duty 

military service, many of whom are carrying heavy loads of military equipment and supplies. 

Due to the operational limitations of the Cessna 402, Cape Air operates accompanying freightonly service when necessary. 

Request for Proposals

As the end of the current rate term approaches, in order to provide sufficient time to complete the 

carrier-selection process before the current contract expires, we are here requesting proposals 

from carriers interested in providing EAS at Fort Leonard Wood, with or without subsidy, for a 

new contract period beginning January 1, 2015. Carriers should file their proposals no later than 

August 13, 2014. After that date, our staff will docket proposals, thereby making them public. 

Shortly afterwards, we will provide a summary of the proposals to community officials and ask 

Essential Air Service at

FORT LEONARD WOOD, MISSOURI

Under 49 U.S.C. § 41731 et seq.

 DOCKET DOT-OST-1996-1167

 
- 2 -

them to submit their final comments. We will give full consideration to all proposals filed in a 

timely manner.1

Interested carriers should prepare their proposals with every expectation that their initial 

proposals will also be their final and only proposals. We retain the discretion to negotiate 

proposals with carriers when we deem it desirable. We also retain the discretion to reject 

outright all unreasonable or unrealistic proposals and solicit a new round of proposals.

We are here providing interested carriers with some basic information to serve as guidance when 

they prepare their proposals, but we will not prescribe a precise format for their proposals. We 

expect proposals to adequately describe the service being proposed and the annual amount of 

subsidy being requested. The applicants can make their own judgments as to the level of detail 

they wish to present; however, we recommend they include information concerning proposed 

schedules and projected block hours. In addition, applicants are urged to provide financial data 

supporting their subsidy requests, including information on their projected expenses and 

revenues. We strongly encourage clear, well-documented proposals that will facilitate their 

evaluation by the affected communities and the Department.2

With respect to Fort Leonard Wood, we expect service proposals consistent with what the 

community is currently receiving, i.e. four daily round trips (28 per week) on 9-seat aircraft to 

Chicago O’Hare, Dallas/Fort Worth, St. Louis or another suitable hub airport with numerous 

airline connections to the national air transportation system. If larger aircraft are contemplated, 

fewer frequencies should be proposed. As always, we will formally solicit the community’s

views on any service options we receive before making a long-term carrier selection decision.

We encourage proposals that meet these requirements in an efficient manner. Carriers are also 

welcome to propose more than one option, if they choose. They need not limit themselves to 

those requirements if they envision other, potentially more attractive service possibilities (e.g. 

different hubs or contract length) with subsidy requirements that remain competitive.

Service and Traffic History

In order to assist interested carriers in developing traffic and revenue projections for their service 

proposals, we have summarized some historical origin-destination traffic in Appendix B. For the 

 1 Carriers should not expect the Department to accept late filings. In cases where a carrier proposes to provide EAS

without subsidy and we determine that service can be reliably provided without such compensation, we typically do 

not proceed with the carrier-selection case. Instead, we simply rely on that carrier’s subsidy-free service as 

proposed.

2 In selecting a carrier to provide subsidized EAS, 49 U.S.C. § 41733(c)(1) directs us to consider five factors: (a) 

service reliability; (b) contractual and marketing arrangements with a larger carrier at the hub; (c) interline 

arrangements with a larger carrier at the hub; (d) community views, giving substantial weight to the views of the 

elected officials representing the users; and (e) whether the carrier has included a plan in its proposal to market its 

service to the community. In addition, the Consolidated Appropriations Act, 2014, Public Law No. 113-76, 

provides that when selecting a carrier to provide EAS, the Department may consider the relative subsidy 

requirements, thus codifying a factor that we have considered since the inception of the program. Interested carriers 

should also be aware that our general provisions governing Essential Air Service will be included in the selection 

Order as part of our authorization of subsidy for the selected service. Appendix C of this Order contains those 

general provisions.
- 3 -

most recent 12-month period for which data is available, ended March 31, 2014, there was an 

average of 25.5 enplaned passengers per day at Fort Leonard Wood.

3

As Fort Leonard Wood is an active military base, many of the passengers utilizing the airport are 

either deploying to or returning from active duty. Carriers should be aware that these passengers 

are often carrying substantial loads of military equipment and supplies (sometimes in excess of 

200 pounds per person). This can present weight and balance issues depending on the aircraft 

used. Under the existing EAS contract, we have authorized Cape Air to operate additional 

freight-only flights at a subsidy rate 94% that of the passenger service. Over the life of the 

existing contract, Cape Air has had to operate these freight-only flights 54.1% of the time, on 

average. Carriers should take this unique situation into account when drafting their proposals.

Filing Procedures 

Carrier proposals should be submitted to the Department with all materials merged into a single 

document. In addition, because the document will be published on Regulations.gov, each page 

should be formatted to be viewed online.

Other Carrier Requirements

The Department is responsible for implementing various Federal statutes governing lobbying 

activities, drug-free workplaces, and nondiscrimination.4 Consequently, all carriers receiving 

Federal subsidy for EAS must certify that they are in compliance with Department regulations 

regarding drug-free workplaces and nondiscrimination, and those carriers whose subsidies 

exceed $100,000 over the life of the rate term must also certify that they are in compliance with 

the regulations governing lobbying activities. Because the Department is prohibited from paying 

subsidy to carriers that do not submit these documents, all carriers that plan to submit proposals 

involving subsidy should be aware that the selected carrier will be required to complete the 

required certifications. Interested carriers requiring more detailed information regarding these 

requirements should contact the Office of Aviation Analysis at (202) 366-5903.5

Community and State Comments

The community and state are welcome to submit comments at any time. As noted above, we 

encourage prospective applicants to contact the community before they submit their proposals so 

that they can tailor them to the community’s needs, as they will not be able to amend them after 

the due date. As noted earlier, we will provide a copy of the proposals to the civic parties and 

ask them to submit their final comments shortly after August 13, 2014, the due date for carrier 

proposals.

 

3 Enplaned passengers per day calculated by adding origin and destination passenger totals from Appendix B, then 

dividing by 365 (days), then dividing by 2.

4 The regulations applicable to these areas are: (1) 49 CFR Part 20 -- New restrictions on lobbying; 

(2) 49 CFR Part 21 -- Nondiscrimination in federally-assisted programs of the Department of Transportation --

Effectuation of title VI of the Civil Rights Act of 1964; 49 CFR Part 27 --Nondiscrimination on the basis of 

disability in programs and activities receiving or benefiting from Federal financial assistance; and 14 CFR Part 382 -

- Nondiscrimination on the basis of disability in air travel; and (3) 49 CFR Part 29 -- Government-wide debarment 

and suspension (non-procurement) and government-wide requirements for drug-free workplace (grants).

5 The certifications are also available on the web at http://www.dot.gov/policy/aviation-policy/small-communityrural-air-service/essential-air-service.
- 4 -

This Order is issued under authority delegated in 49 CFR 1.25a(b) and re-delegated to the 

Director, Office of Aviation Analysis.

ACCORDINGLY,

1. We request that carriers interested in providing Essential Air Service at Fort Leonard Wood, 

Missouri, submit their proposals, with or without subsidy requests, no later than 

August 13, 2014. Proposals should be e-mailed to EAS@dot.gov, with the subject “Proposal to 

Provide Essential Air Service at Fort Leonard Wood, Missouri (Docket DOT-OST-1996-

1167).”6

2. Docket DOT-OST-1997-1167 will remain open until further order of the Department; and 

3. We will serve copies of this Order on the mayors of Waynesville and Saint Robert, Missouri, 

personnel at Fort Leonard Wood, the airport manager of Waynesville/St. Robert Regional 

Airport, and the service list for this docket.

Persons entitled to petition the Department for review of this Order under the Department’s 

Aviation Economic Regulations, 14 CFR 385.31(a), must file such petitions within seven (7) 

days after the date of service of this Order.

This Order will be effective immediately, and the filing of a petition for review shall not 

preclude its effectiveness.

By:

TODD M. HOMAN

Director

Office of Aviation Analysis

(SEAL)

An electronic version of this document is available

on the Internet at http://www.regulations.gov

 6 Questions regarding filings in response to this Order may be directed to A.J. Muldoon at (202) 366-1058 or 

albert.muldoon@dot.gov.
Appendix A

AREA MAP

This map is provided by Sabre® AirVisionTM Profit Essentials and is being used with express permission of the 

copyright holder, Sabre Airline Solutions®.
Appendix B

Page 1 of 2

Traffic History1

 1 Source: BTS T-100, Passengers in Scheduled Passenger Service.

Year Quarter Origin Pax Destination Pax O&D Pax

2011 1 1,249 1,538 2,787

2011 2 1,785 1,884 3,669

2011 3 2,124 2,060 4,184

2011 4 1,816 1,806 3,622

2011 Total 6,974 7,288 14,262

2012 1 1,711 1,955 3,666

2012 2 2,119 2,260 4,379

2012 3 2,104 2,318 4,422

2012 4 1,957 2,016 3,973

2012 Total 7,891 8,549 16,440

2013 1 1,806 2,016 3,822

2013 2 2,301 2,199 4,500

2013 3 2,354 2,162 4,516

2013 4 1,864 1,624 3,488

2013 Total 8,325 8,001 16,326

2014 1 1,706 1,741 3,447

2014 Total 1,706 1,741 3,447
Appendix B

Page 2 of 2

Cape Air Passenger and Freighter Operations by Month1

 1 Source: Cape Air reporting.

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

50

100

150

200

250

300

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2013 2014 2014 2014 2014 2014

Total Departures - Pax Total Departures - Freight % Freighter
Appendix C

Example of General Terms and Conditions for Essential Air Service

The carrier understands that it may forfeit its compensation for any flights that it does not 

operate in conformance with the terms and stipulations of the rate Order, including the 

service plans outlined in the Order and any other significant elements of the required 

service, without prior approval. The carrier understands that an aircraft take-off and 

landing at its scheduled destination constitutes a completed flight; absent an explanation 

supporting subsidy eligibility for a flight that has not been completed, such as certain 

weather cancellations, only completed flights are considered eligible for subsidy. In 

addition, if the carrier does not schedule or operate its flights in full conformance with the 

Order for a significant period, it may jeopardize its entire subsidy claim for the period in 

question. If the carrier contemplates any such changes beyond the scope of the Order 

during the applicable period of these rates, it must first notify the Office of Aviation 

Analysis in writing and receive written approval from the Department to be ensured of 

full compensation. Should circumstances warrant, the Department may locate and select a 

replacement carrier to provide service on these routes. The carrier must complete all 

flights that can be safely operated; flights that overfly points for lack of traffic will not be 

compensated. In determining whether subsidy payment for a deviating flight should be 

adjusted or disallowed, the Department will consider the extent to which the goals of the 

program are met and the extent of access to the national air transportation system 

provided to the community. 

If the Department unilaterally, either partially or complete, terminates or reduces 

payments for service or changes service requirements at a specific location provided for 

under this Order, then, at the end of the period for which the Department does make 

payments in the stipulated amounts or at the stipulated service levels, the carrier may 

cease to provide service to that specific location without regard to any requirement for 

notice of such cessation. Those adjustments in the levels of subsidy and/or service that 

are mutually agreed to in writing by the Department and carrier do not constitute a total 

or partial reduction or cessation of payment. 

Subsidy contracts are subject to, and incorporate by reference, relevant statutes and 

Department regulations, as they may be amended from time to time. However, any such 

statutes, regulations, or amendments thereto shall not operate to controvert the foregoing 

paragraph.

Funds may not be available for performance under this Order beyond [DATE]. The 

Government’s obligation for performance under this Order beyond [DATE], is subject to 

the availability of funds from which payment for services can be made. No legal liability 

on the part of the Government for any payment may arise for performance under this 

Order beyond [DATE], until funds are made available to the Department for 

performance. If sufficient funds are not made available for performance beyond [DATE], 

the Department will provide notice in writing to the carrier. 

All claims for payment, including any amended claims, must be submitted within 90 days 

of the last day of the month for which compensation is being claimed. For example, 

claims for service provided in July must be filed by October 31st; August claims must be 

submitted by November 30th, and so on.